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Accommodation Bond

An accommodation bond is an amount of money paid by Low Level Care and Extra Service Care residents in an aged care facility. An accommodation bond may be paid as a lump sum, or by periodic payments, or a combination of both lump sum and periodic payments.

The provider can deduct a monthly retention amount, for a maximum of 5 years, from the accommodation bond. The monthly retention amount is a fixed amount specified in the accommodation agreement and cannot exceed the capped maximum amount applicable at the time of entry to the facility. The provider also retains any interest derived from the bond.

The balance of the lump sum accommodation bond is refundable to the resident or their estate on departure.  The refunded accommodation bond balance is an assessable asset.

If there is a liability under the accommodation bond agreement for the bond to be paid wholly, or partly by periodic payments and the former principal home is rented out, then both the former home and the rental income are exempt from the income and assets tests.



Hostel type services, which cater for those people who need middle to lower levels of help with daily tasks and personal care.

Services in this category include:

  • Assistance with the activities of daily living (such as bathing, dressing and eating);
  • Mobility and communication;
  • Meals, including special diets;
  • Certain treatments and procedures;
  • Recreational therapy and rehabilitation support;
  • Assistance in obtaining health and therapy services; and
  • Support for people with cognitive impairments.

Low level care is also known as Category 5-8 care.

Some residential aged care facilities offer residents a higher standard of accommodation, food and services at a higher charge.  These facilities are called 'extra service' facilities.

These places have in the past also been known as “Exempt Facility Places” and “Exempt Nursing Home Places”

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